# Town Councils’ FY2016 Financial Statements and the FY2016 Town Council Management Report - **Source:** Ministry of National Development - **Published:** 2017-11-20T08:35:00.000Z - **Author:** Ministry of National Development - **Original:** https://www.mnd.gov.sg/newsroom/press-releases/view/town-councils-fy2016-financial-statements-and-the-fy2016-town-council-management-report - **Topics:** Government & Policy ## Featured rationale The maintenance gaps and recurring audit qualification signal uneven estate-management performance, which could affect resident confidence and prompt stronger operational and governance oversight. ## AI summary Twelve of 16 Town Councils received “Amber” for FY2016 estate maintenance, while AHTC recorded its sixth consecutive qualified financial statement. ## Original article Presentation of Town Councils’ FY2016 Financial Statements to Parliament The Ministry of National Development (MND) has presented the FY2016 audited financial statements of all Town Councils (TCs) to Parliament, and the TCs will be making them available on their websites. All TCs had unqualified financial statements for FY2016, except for Aljunied-Hougang Town Council (AHTC) whose financial statements were qualified by the TC’s external auditor. The auditor had issued disclaimers as it was unable to ascertain the TC’s opening balances, payables and accrued expenses, or verify staff costs. This is the 6th consecutive year that AHTC has received qualified financial statements from its external auditor. Results of the FY2016 Town Council Management Report MND has also released the FY2016 Town Council Management Report (TCMR), covering the period April 2016 to March 2017. This is the first TCMR for the TCs formed after the 2015 General Election. The TCs were assessed under five indicators, using three colour bands. Assessment was based on measurable objective criteria submitted by the TCs and their auditors. The results of the FY2016 TCMR are comparable to that of the previous years. They are summarised below, and more details can be found at Annex A and Annex B. TCMR Indicators TCMR Indicators Result Result Estate Cleanliness Examines town cleanliness in areas such as the presence of litter, bulky refuse and graffiti. Estate Cleanliness Examines town cleanliness in areas such as the presence of litter, bulky refuse and graffiti. All TCs scored “Green” All TCs scored “Green” Estate Maintenance Examines town maintenance in areas such as damaged pipes/walls and obstructions in common areas. Estate Maintenance Examines town maintenance in areas such as damaged pipes/walls and obstructions in common areas. 4 TCs scored “Green” 12 TCs scored “Amber” 4 TCs scored “Green” 12 TCs scored “Amber” Lift Performance Examines the performance of lifts as measured by the frequency of lift breakdowns and functioning of the Automatic Rescue Device (ARD) [1]. Lift Performance Examines the performance of lifts as measured by the frequency of lift breakdowns and functioning of the Automatic Rescue Device (ARD) [1]. All TCs scored “Green” All TCs scored “Green” S&CC Arrears Management Examines the extent of TCs’ S&CC arrears that residents have to bear. S&CC Arrears Management Examines the extent of TCs’ S&CC arrears that residents have to bear. 15 TCs scored “Green” 1 TC scored “Amber” 15 TCs scored “Green” 1 TC scored “Amber” Corporate Governance Reflects the strength of TCs’ corporate governance through governance-related observations by their auditors and their self-declared compliance with the Town Councils Act and the Town Councils Financial Rules (TCFR). Corporate Governance Reflects the strength of TCs’ corporate governance through governance-related observations by their auditors and their self-declared compliance with the Town Councils Act and the Town Councils Financial Rules (TCFR). 14 TCs scored “Green” 1 TC scored “Amber” 1 TC scored “Red” 14 TCs scored “Green” 1 TC scored “Amber” 1 TC scored “Red” Observations The broad observations for the indicators are as follows: Estate Cleanliness. All TCs were banded “Green” as they had less than 4 counts of cleanliness observations per block on average. Estate Maintenance. 4 TCs were banded “Green” and 12 TCs were banded “Amber”. TCs which had less than 4 counts of maintenance observations per block on average were banded “Green”, while TCs which had 4 to less than 8 counts of maintenance observations per block on average were banded “Amber”. Lift Performance. All TCs were banded “Green” as there were fewer than 2 breakdowns every month for every 10 lifts managed by the TCs, and the lifts' ARD failure rate was zero. S&CC Arrears Management. AHTC was banded “Amber” for FY2016. The former Aljunied-Hougang-Punggol East TC’s score for the FY2015 TCMR was reflected as “Pending” last year, pending the outcome of KPMG’s review [2]. Based on the revised FY2015 monthly S&CC arrears figures submitted by the TC to MND subsequently, the TC was banded “Red” in the FY2015 TCMR. Corporate Governance. AHTC was banded “Red” due to three non-compliances with the TCFR. The non-compliances were: (i) late quarterly transfer to the sinking fund, (ii) waiver of quotation that was not in accordance with requirements under the TCFR, and (iii) fixed assets count report not certified by the TC in accordance with the requirements under the TCFR. Ang Mo Kio TC was banded “Amber” as the TC had not sought approval from the correct approving authority for the waiver of quotations as required under the TCFR. Enquiries and Feedback Members of the public can refer to the TCs’ FY2016 financial statements that will be uploaded on the TCs’ websites, and learn more about the TCMR at www.towncouncils.sg. The current set of TCMR indicators and methodology have been in place since FY2012. MND will be reviewing them to see how they can be further improved. We will be engaging views from stakeholders in the course of this review, and welcome all feedback and inputs. [1] The ARD brings the lift car to the nearest lift landing during a power failure. [2] KPMG has been appointed by the TC, pursuant to an order given by the Court of Appeal, to look into the TC’s outstanding non-compliances of section 35(c) of the TCA and to establish if any past payments made by the TC were improperly made and ought to be recovered. KPMG had, in its first two monthly progress reports dated 15 April 2016 and 13 May 2016, highlighted that the TC’s S&CC arrears management and reporting was one of the 15 audit points which the TC had yet to resolve. Subsequently, KPMG had, in its monthly progress report dated 15 September 2017, stated that the TC had resolved the audit point. ## Chinese translation > Translation model: grok_cli ### 市镇理事会2016财政年度财务报表及2016财政年度市镇理事会管理报告 向国会呈交市镇理事会2016财政年度财务报表 国家发展部（MND）已向国会呈交所有市镇理事会（TC）2016财政年度经审计财务报表，各市镇理事会亦将在其网站公布有关报表。 除阿裕尼—后港市镇理事会（AHTC）的财务报表被其外聘审计师出具保留意见外，所有市镇理事会2016财政年度的财务报表均为无保留意见。审计师因无法确定该市镇理事会的期初余额、应付款项及应计费用，或核验员工成本，而发出无法表示意见。这是AHTC连续第6年获得外聘审计师出具保留意见的财务报表。 2016财政年度市镇理事会管理报告结果 国家发展部亦已发布2016财政年度市镇理事会管理报告（TCMR），涵盖2016年4月至2017年3月期间。这是2015年大选后新组成市镇理事会的首份TCMR。各市镇理事会按五项指标、以三种色带进行评估。评估依据为各市镇理事会及其审计师提交的可衡量客观标准。 2016财政年度TCMR的结果与往年大致相当。摘要如下，更多详情见附件A及附件B。 TCMR指标 TCMR指标 结果 结果 组屋区清洁 检视市镇清洁情况，例如垃圾、大型废弃物及涂鸦的出现情况。 组屋区清洁 检视市镇清洁情况，例如垃圾、大型废弃物及涂鸦的出现情况。 所有市镇理事会获评“绿色” 所有市镇理事会获评“绿色” 组屋区维修保养 检视市镇维修保养情况，例如损坏的管道/墙壁及公共区域障碍物。 组屋区维修保养 检视市镇维修保养情况，例如损坏的管道/墙壁及公共区域障碍物。 4个市镇理事会获评“绿色” 12个市镇理事会获评“琥珀色” 4个市镇理事会获评“绿色” 12个市镇理事会获评“琥珀色” 升降机表现 以升降机故障频率及自动救援装置（ARD）[1]运作情况衡量升降机表现。 升降机表现 以升降机故障频率及自动救援装置（ARD）[1]运作情况衡量升降机表现。 所有市镇理事会获评“绿色” 所有市镇理事会获评“绿色” 服务与杂费（S&CC）欠款管理 检视市镇理事会S&CC欠款中须由居民承担的程度。 服务与杂费（S&CC）欠款管理 检视市镇理事会S&CC欠款中须由居民承担的程度。 15个市镇理事会获评“绿色” 1个市镇理事会获评“琥珀色” 15个市镇理事会获评“绿色” 1个市镇理事会获评“琥珀色” 公司治理 通过审计师就治理相关事项的观察，以及市镇理事会自行申报对《市镇理事会法令》及《市镇理事会财务规则》（TCFR）的遵守情况，反映其公司治理力度。 公司治理 通过审计师就治理相关事项的观察，以及市镇理事会自行申报对《市镇理事会法令》及《市镇理事会财务规则》（TCFR）的遵守情况，反映其公司治理力度。 14个市镇理事会获评“绿色” 1个市镇理事会获评“琥珀色” 1个市镇理事会获评“红色” 14个市镇理事会获评“绿色” 1个市镇理事会获评“琥珀色” 1个市镇理事会获评“红色” 观察结果 各项指标的主要观察如下： 组屋区清洁。所有市镇理事会获评“绿色”，因其平均每座组屋楼宇的清洁观察次数少于4次。 组屋区维修保养。4个市镇理事会获评“绿色”，12个获评“琥珀色”。平均每座组屋楼宇维修保养观察次数少于4次的市镇理事会获评“绿色”；平均每座为4次至少于8次的获评“琥珀色”。 升降机表现。所有市镇理事会获评“绿色”，因每10部由市镇理事会管理的升降机每月故障少于2次，且升降机ARD故障率为零。 S&CC欠款管理。AHTC在2016财政年度获评“琥珀色”。前阿裕尼—后港—榜鹅东市镇理事会在2015财政年度TCMR中的评分去年显示为“待定”，以待KPMG检讨结果[2]。根据该市镇理事会其后向国家发展部提交的经修订2015财政年度每月S&CC欠款数字，该市镇理事会在2015财政年度TCMR中获评“红色”。 公司治理。AHTC因三项未遵守TCFR的情况获评“红色”。未遵守事项为：（i）迟延按季度转入沉淀基金；（ii）豁免报价未按TCFR规定办理；以及（iii）固定资产盘点报告未按TCFR规定由市镇理事会核证。宏茂桥市镇理事会获评“琥珀色”，因其豁免报价时未按TCFR规定向正确审批机关寻求批准。 查询与反馈 公众可参阅各市镇理事会网站将上载的2016财政年度财务报表，并在www.towncouncils.sg了解更多关于TCMR的资料。现行TCMR指标与方法自2012财政年度起沿用。国家发展部将予以检讨，探讨如何进一步改进。我们在检讨过程中将征询利益相关方意见，并欢迎一切反馈与建议。 [1] ARD在停电时将升降机轿厢送至最近的升降机停靠层。 [2] KPMG由该市镇理事会根据上诉庭命令委任，负责审查该市镇理事会尚未解决的《市镇理事会法令》第35(c)条违规事项，并确定该市镇理事会过去是否有不当付款应予追回。KPMG在日期为2016年4月15日及2016年5月13日的首两份每月进度报告中指出，该市镇理事会的S&CC欠款管理与汇报是该市镇理事会尚未解决的15项审计要点之一。其后，KPMG在日期为2017年9月15日的每月进度报告中表示，该市镇理事会已解决该审计要点。